Kuala Lumpur, July 27, 2011 – The International Shariah Research Academy for Islamic Finance (ISRA) in collaboration with Bank Negara Malaysia (BNM) conducted a one-day Thematic Workshop on Shariah Audit Framework for Islamic Financial Institutions (SAF) on 25 Sya’ban, 1432 (27 July 2011) at Sasana Kijang, Bank Negara Malaysia.

The thematic workshop aims at receiving feedback from the industry players, as well as other relevant stakeholders on the SAF research project which provides guidelines on arrangements, structures and processes necessary to properly and effectively conduct internal Shari’ah audit. The SAF will complement the Shari’ah Governance Framework for Islamic Financial Institutions issued by BNM to be effective from January 2011.

The workshop was well attended, with about 150 participants comprising internal and external auditors, Shariah specialists, accounting and auditing organisations, academics, as well as industry practitioners. The opening remark was delivered by Assoc. Prof. Dr Mohamad Akram Laldin, Executive Director of ISRA. It was then followed by the paper presentation on ‘Proposed Shariah Audit Framework’ by Prof. Dr. Abd. Rahim Abd. Rahman, Research Fellow of ISRA, as well as Principal Researcher of the SAF research project. Prof. Dr. Abd. Rahim has pointed out two main objectives of the SAF:

1. to establish institutional arrangements and requirements to facilitate the effective implementation of internal Shariah audit as an integral component of the Shariah Governance Framework; and
2. to specify scope of Shariah audit, Shariah audit objectives, Shariah audit and governance, audit charter, competency of Shariah auditors, Shariah audit process and reporting requirements for Shariah audit.

The second session was the discussion on ‘Proposed Shariah Audit Framework’. The panellists consist of industry practitioners as follows:

a. Encik Hafni Mohd. Said, Chief Internal Auditor, Bank Muamalat;
b. Puan Khatimah Mahadi, Chief Internal Auditor, Affin Bank;
c. Encik Romie Khalid, Chief Internal Auditor, Takaful Ikhlas; and
d. Ustaz Mohd Nazri Chik, Chief Shariah Officer, Bank Islam.

The final session was the ‘Open Discussion with Participants’. Many contructive comments and feedback were received from the participants in order to further develop and strenghten the proposed SAF. At the end of the workshop, Assoc. Prof. Dr. Asyraf Wajdi Dusuki who moderated both discussions gave the closing remark and thanked all the participants and presenters for making the event a success. The workshop was concluded by proposing a minor amendment and rectification to the proposed SAF prior to its submission to the regulatory authority for implementation.